Antofagasta Share Discussion Threads

[grgkecer] 26/6/2008 08:56

CHILE LOOKS TO THE FUTURE IN SOLAR ENERGY
Tuesday, 24 June 2008
Northern Solar Projects Could Spark Renewable Energy Renaissance

Sistemas Automaticos (SA), a consortium of 30 companies, will submit a full Environmental Impact Study (EIA) in three weeks for the Atacama desert's first significant solar energy park – Icaro.

If the EIA study is approved, work on the project will begin sometime in 2009. Icaro would produce 23 Megawatts (MW) and cost US$36 million, and could open the door for much more substantial renewable energy projects in northern Chile's Region II, where the mining industry is king.

"We have already negotiated with one of Chile's most important mining companies though it chooses to remain anonymous, and they are promising to invest in this project," Sistemas Automaticos president Pedro Gaete told local media.

Icaro's energy will feed into Chile's northern electricity grid, known as the SING, which has a current generating capacity of roughly 3,600 MW. The country's other major electricity network, the centrally-located SIC, has a current generating capacity of some 9,000 MW, combining to give Chile a total energy capacity of some 13,000 (MW).

Soaring gas prices, Argentina's reduced natural gas imports and drought threatens to disrupt energy production in northern Chile and, thus, the output at some of the world's biggest and most important copper mines.

Most energy experts agree that solar energy is the answer to northern Chile's energy dilemma: not solar energy in the traditional form, as in solar panels, but solar thermal energy. Solar thermal energy involves covering acres of desert with mirrors that focus intense sunlight on a tube-contained fluid, heating the fluid and creating the energy that turns a turbine and generates electricity.

"The Atacama is one of the ideal places in the world for concentrated solar thermal energy, and Chile just isn't doing enough with their potential for solar energy," Professor David Cohen, from Israel's Weizmann Institute of Science, told the Santiago Times. The Weizmann Institute is a leading solar energy research institute.

"We have to be realistic," continued Cohen. "The Atacama desert is very far from the populated areas of Chile. So let's say you fill the whole Atacama desert with solar collectors. Still, transporting the electricity to where it is needed may not be the most energy efficient way of supplying all of Chile's electricity needs. But Chile lies on the roaring 40's: if you put a bunch of wind generators at the 40 degree latitude, you could cover all of Chile' energy needs using both wind and solar energy."

Electricity in Chile is 99.9 percent generated by either hydroelectric power or by thermal power stations run on natural gas or carbon based fuels (oil, diesel, coal). Chile has no nuclear power and very limited amounts of geothermal or wind power (ST, May 12).

Congress recently enacted a law proposed by President Michelle Bachelet requiring modest advances in renewable energy production in Chile, but nothing near what the country is capable of producing. And Congress has not yet considered measures promoting feed-in tariffs – perhaps the most important government tool yet to be devised to jump start the renewable energy revolution. Feed-in tariffs require energy companies to buy energy produced by small-time operators (i.e. rooftop solar systems) at a premium rate, thus guaranteeing homeowners a quick payoff on their solar investment.

Germany and Spain both promote feed-in tariffs, and sun-challenged Germany has created 14,000 MW of solar power in just the past five years – not to mention a sizeable number of jobs (240,000) in the renewable energy sector.

Further south, in Region III, another solar project is under way in Copiapo, led by FundacionChile. The aim there is to make Region III a solar energy business and energy center within three years.

Helping the effort is Chile's state-owned mining company Codelco. "We are very interested in using solar energy to power our mines, but first we want explore the options in solar energy technology before we begin," a Codelco spokesman told Santiago Times.

The Region III project started modestly in 2007 when FundacionChile sent two chemical engineers to Copiapo to study sustainable energy. It has now become an international project that includes scientists from leading solar energy investigation centers around the world, including Israel's Weizmann Institute of Science.

"If we use just one percent of the Atacama's surface for solar energy, we can produce close to 3,000 MW of solar energy," Energy Ministry spokesperson Marcela Angula manager recently told local media.

The Region III research also includes solar-powered water desalinization plants, which convert sea water into usable water, that would be located close to mining operations.

By Julia Thompson

[grgkecer] 24/6/2008 07:12

COPPER COMPANIES EXPLORE CHILE'S REGION I
Tuesday, 24 June 2008
Propelled by higher earning expectations for Chile's biggest industry, copper producing companies are flocking to the country's northern region to expand their mining operations.
Better technology has allowed companies to dig into the highest frontiers, and though information is scarce about mines on the Bolivian border, experienced excavators are already working there.

"It's part of an exploration strategy for the entire northern region," Juan Pablo Schaeffer of Xstrata told The Santiago Times. While Xstrata's explorations are not specific to the Bolivian border, the Swiss-based mining group is one of several who have made valid bids for the Celite Chile mine in the north.

Currrently, 23 percent of the Region I desert territory is dedicated to mining activities, either exploration or mining itself. Exploration of the region expanded from 8.6 million hectares in 2006 to 9.3 million in 2007, and mining, too, grew from 9.1 million hectares in 2006 to 10.2 in the same year. State-owned CODELCO, the world's largest copper producer, is testing the waters at the Yarina mine to evaluate the quality of copper there.

Mining activity accounted for US$43.7 billion in exports in 2007, almost two-thirds of total exports and six times more revenue than just five years ago.

The Chilean Copper Commission predicts that investment in mining, a foreign fund magnet, will boom in the coming years due to new developing projects – rising from US$1.9 billion in 2007 to US$3.2 billion in 2008, and then to US$4.5 billion in 2009.

SOURCE: EL MERCURIO, BUSINESS NEWS AMERICAS
By Elaine Ramirez

[daza70] 20/6/2008 07:45

Brazil's Vale says not in talks to acquire any company




LONDON (Thomson Financial) - Brazil's Vale, the world's largest iron ore
producer, said Thursday it is not in talks to buy any company and it is not
discussing the financing of an acquisition with banks.
The company made the statement in response to speculation in the Brazilian
press.
Anglo American Plc., Freeport-McMoRan Copper and Gold Inc. and Alcoa Inc.
have all been mentioned as possible takeover targets.
In March, Vale's attempt to buy Xstrata Plc. failed. Under U.K. takeover
panel rules, Vale is unable to make a hostile offer for Xstrata for six months
after the talks stalled, but it is able at any time to make a recommended bid or
a counter offer if a rival company shows an interest.

[aalli] 19/6/2008 10:49

when is this one going to rise? hope it ralies some time soon.

[grgkecer] 16/6/2008 15:55

JUN 16, 2008 - 08:30 ET
Metallica Resources Signs Option Agreement for Antofagasta Minerals to Earn 70% Interest in Rio Figueroa Project
TORONTO, ONTARIO--(Marketwire - June 16, 2008) - Metallica Resources Inc. (TSX:MR) (AMEX:MRB) is pleased to announce that its wholly owned subsidiary Minera Metallica Resources Chile Ltda. (Metallica) has entered into an agreement with Antofagasta Minerals S.A. (Antofagasta), a Chilean company and wholly owned subsidiary of Antofagasta PLC, whereby Antofagasta has the option to earn up to a 70% interest in Metallica's Rio Figueroa copper-gold project. The Rio Figueroa project is currently 100% owned by Metallica and is located approximately 125 kilometers northeast of Metallica's 30% owned El Morro project.

The agreement provides Antofagasta with the right to earn an initial 30% interest in the project by making a US$50,000 cash payment to Metallica upon signing and a firm commitment for cash purchase payments to Metallica totaling US$2.6 million by September 2, 2009. Metallica will in turn use the $2.6 million in cash payments to complete its option to purchase a 100% interest in the project from SCM Los Potrillos, an underlying property owner controlled by the Chilean National Mining Company (ENAMI). Upon completion of its option to earn a 30% interest, the project will be operated under a joint venture shareholder's agreement between the companies. Antofagasta also has the option to earn an additional 20% interest in the project by completing US$7 million in exploration expenditures by June 5, 2012, two-thirds of which must be directed specifically toward exploration drilling activities which are to commence by June 5, 2009. Should Antofagasta elect not to exercise its option to earn a 50% interest, the project will be operated by both companies as a 30:70 joint venture with Metallica retaining the majority interest. Alternatively, upon completion of the second option, Antofagasta will hold a 50% interest in the project and an option to earn an additional 20% interest by completing a feasibility study for the project and making a final cash payment of US$5 million to Metallica by June 5, 2015. After earning a 70% interest, based on a positive feasibility study and a decision to develop the project to commercial production, Metallica may request Antofagasta to use its best efforts to arrange financing for the development program on a common projects financing basis, utilizing the project's assets and future cash flows as security for financing. Should Antofagasta elect not to exercise its option to earn a 70% interest, the project will continue to be operated by both companies as a 50:50 joint venture.

The Rio Figueroa project is situated along a southern extension of the Domeyko fault system within the Eocene-Oligocene porphyry belt, host to some of the world's largest copper deposits. Since acquiring the property in 2004, Metallica has invested approximately US$1 million in combined cash purchase option payments and land holding fees and an estimated US$3.15 million in direct exploration expenditures. The latter includes the completion of 56 drill holes totaling 14,344 meters, nearly two-thirds of which has been focused on the Cerro Matta target where drilling by Metallica has intercepted significant copper-gold mineralization over a zone measuring 400 meters wide by 500 meters long and at least 600 meters deep.

Among the significant drill intercepts received from Cerro Matta to date are 294 meters averaging 0.42% copper and 0.55 g/t gold from 314 to 608 meters in hole MDH-2, 422 meters averaging 0.24% copper and 0.28 g/t gold from 22 to 444 meters in hole MDH-8, and 158 meters averaging 0.37% copper and 0.56 g/t gold from 288 to 446 meters in hole MRC-15. Supporting ground magnetics and IP-Resitivity surveys over Cerro Matta and the surrounding area further suggest the Cerro Matta target represents the upper part of a larger porphyry copper-gold system that remains open to further exploration in at least three directions and at depth.

"We are very pleased Antofagasta Minerals has joined us to advance the Rio Figueroa project", stated Metallica's President and CEO Richard Hall. "Antofagasta's position as one of the world's largest copper producers with major mining operations in Chile and an international focus that includes exploration programs in several other countries offers unparalleled experience and depth for the advancement of the Rio Figueroa project".

Actlabs Chile S.A. of Coquimbo, Chile has completed all of Metallica's analytical work for the Rio Figueroa project to date. The analytical methods used for drill hole samples is geochemical analysis for copper and fire assay with atomic absorption finish for gold. A map showing drill hole locations and a table of drill hole location coordinates will be provided with a Material Change Report to be filed on SEDAR within 10 days of this press release. The Qualified Person, as defined by Canadian NI 43-101, responsible for the design and conduct of all exploration work performed by Metallica to date and the presentation of the information contained in this press release is Mr. Mark A. Petersen, Certified Professional Geologist - AIPG and Vice President of Exploration for Metallica Resources Inc.

Metallica Resources is a Canadian gold and silver producer. It currently has 96.5 million shares outstanding and no debt. For further details on Metallica Resources, please visit the company's website at www.metal-res.com.

[grgkecer] 16/6/2008 15:53

Metallica Says Antofagasta May Purchase Stake in Chile Deposit

By Heather Walsh

June 16 (Bloomberg) -- Metallica Resources Inc. said Antofagasta Plc may buy a stake in its copper and gold exploration project in Chile.

Antofagasta has the option to buy 30 percent of the project in exchange for a $50,000 cash payment and $2.6 million to be used to purchase the entire property from Chile's state-owned National Mining Co., Toronto-based Metallica said today in a statement distributed by Market Wire.

Antofagasta can acquire an additional 20 percent of the project by spending $7 million on exploration by June 2012 and another 20 percent, bringing the total stake to 70 percent, by completing a feasibility study and making a cash payment of $5 million by June 2015, Metallica said.

[grgkecer] 11/6/2008 20:00

I should mention that the mining sector in general and not least in Chile continues to be increasingly subject to global economic pressures. These pressures affect not only the cost but in some cases the availability of steel, energy, fuel and oil products, sulphuric acid and equipment - all essential components of mining operations - as well as a shortage of trained labour and professionals. To illustrate how we are facing these pressures we have recently installed back-up generators at all three mines.

. . .

As you may know, both copper and molybdenum prices continued their strong upward trends through 2007. Copper averaged 323.3 cents per pound - up 5.9 per cent on 2006 - and molybdenum averaged 30.2 dollars per pound - up 21.8 per cent on 2006. We continue to see strong demand and difficulties in supply. These record price levels largely offset lower copper production and higher operating costs leaving the Group in 2007 with similar results for those of 2006 at US$3.8 billion turnover and US$1.4 billion net earnings.

The question is whether higher prices in 2008 will be sufficient to offset the still further increasing costs, particularly of power.

[nazim133] 11/6/2008 19:07

I topped up too today at 618p, but I reckon it could keep dropping lower tomorrow since it ended at 615p. It has now gone lower than its past low level of 620p. As long as the ftse keeps heading south Anto will keep following.

I don't understand today's RNS and why it was bad news.
Can anyone explain or know the reason behind Anto's drop?

If it goes to 580 I may top up again.

[con90210] 11/6/2008 17:46

Glad I waited a bit longer as picked up 2k for 625p today...lets hope this one gets back to the 750p+ range of a few weeks back

[mrminister] 11/6/2008 12:52

interesting me at this price...now at the march 625 point of turn.... will it do the same

outch !!!! being wacked unjustly

[aspers] 10/6/2008 21:11

I decided my buy would be at 650p.....thats now reached but my cash tied up elsewhere, sodd it as I now see a steady rise back to 800p

[mhrangoon] 10/6/2008 15:49

Why this company is constantly going down. So far I am loosing over £3k

[grgkecer] 06/6/2008 09:07

Chile looks to solar energy to power copper mines
By Jon Nones
05 Jun 2008 at 12:50 PM

Bloomberg reports: Chile may tap solar energy to help avoid power rationing. Like South Africa, the country is facing an energy shortage that may threaten to disrupt output at the world's biggest copper mines

The government is considering a plan to install solar panels in the Atacama Desert, where more than a fifth of the world's copper is mined, Energy Minister Marcelo Tokman and Chilean President Michelle Bachelet will travel to Nevada next week to visit the world's third-largest solar plant.

The installations could help ease an energy shortage in northern Chile caused when Argentina started reducing natural-gas shipments in 2004. Chile imports almost three-quarters of its power.

[grgkecer] 06/6/2008 07:33

SOLAR POWER IN CHILE
Friday, 06 June 2008
A Key To Energy And Economic Security

[grgkecer] 06/6/2008 07:31

COCHILCO PREDICTS COPPER SURPLUS IN 2009
Friday, 06 June 2008
The Chilean Copper Commission (COCHILCO) predicted on Wednesday a 450,000 ton surplus in the global copper production for the year 2009. Global supplies are expected to increase by 7.9 percent between now and then due to increased production.

Growing demand from China, which should increase by 370,000 tons over the next year, as well as demand from European and other Asian countries should raise global demand by 5.2 percent.

"China has always been the main motor of global refined copper demand," said the COCHILCO quarterly report.

Global mining production is expected to rise by 8.2 percent to 17.8 million tons in 2009. Meanwhile, 2008 production growth will only reach 3.8 percent.

Chile's copper production is expected to grow by 2.6 percent for 2008. Chilean copper mines Gaby, Spence, Escondida Oxidos and Collahuasi predict to raise their production to 5.6 million tons alone (ST, May 28).

COCHILCO said global copper production will record a slight deficit of 46,000 tons for 2008 because of high copper prices. Still, the expected 2009 surplus should make copper price drop.

SOURCE: LA TERCERA

[beaudelaire] 06/6/2008 07:03

Sorry - Yes P/E !

[deadly] 05/6/2008 21:18

I guess you mean p/e?

[beaudelaire] 05/6/2008 15:01

At 665p it looks very cheap too.
With an EPS of 9.12, it's the cheapest of the miners.
£7 should be its true bottom.

[huttgl] 01/6/2008 09:41

Oversold according to the RSI and good resistance to further lows on Friday. A line from the lows of January and March puts it right where it is now. All looks good for a return to 800+.

[astol] 28/5/2008 05:12

got out at 789 a week ago yeh reckon these are ripe for picking at the end of this week IMO circa 670p

[aspers] 27/5/2008 19:46

I am waiting for 650 then will be back aboard for the ride back to 800.....look at the chart history and make your own mind up, that was my plan last time and it worked out fine!!

[con90210] 27/5/2008 18:41

closed below 690p today...anyone think this is a good time to get back into?

[grgkecer] 27/5/2008 07:07

LEGAL BATTLES CONTINUE WITH PELAMBRES TAILINGS DAM
Tuesday, 27 May 2008
Although the owners of the Region IV Los Pelambres copper mine recently agreed to pay US$23 million to settle an environmental lawsuit brought by downstream landowners (ST May 9), its appears the mine still has a few more legal hurdles to clear before it becomes a reality.

Antofagasta Minerals, the owner of Los Pelambres, the nation's fourth largest copper mine, is expecting to square off in court this June with plaintiffs claiming the company fraudulently acquired the land title to part of the mine. Plaintiffs argue that signature fraud was involved in a property deal nine years before Antofagasta acquired the Los Pelambres property.

Antofagasta Minerals, owned by the powerful Luksic group, controls 60 percent of the Pelambres mine as well as two other Chilean mines. Its El Mauro tailings dam – the center of the US$23 million settlement - will replace the Quillayes tailings dam, which is approaching capacity.

The El Mauro tailings dam project had been approved by Chile's water authority, the General Water Directorate (DGA), as well as regional and national environmental authorities. Construction started in 2005, but Antofagasta had to stop construction due to court orders in November 2006 and again in August 2007, when Region IV residents had feared that the tailings dam would destroy the surrounding Pupío valley by draining and contaminating the river used for irrigation and drinking water.

[astol] 16/5/2008 10:41

nice one Anto 800p looking to be reached today

[astol] 15/5/2008 15:57

What a + turnaround -12p to + 15p-bid/consolidation in the next week???!!!